According to CoinGecko, the capitalization of the decentralized finance (DeFi) industry fell by 74.6% in Q2. However, users remain committed to their favorite services.
The total capitalization of the DeFi sphere fell from $142 million to $36 million. According to CoinGecko analysts, the collapse of the Terra ecosystem and the USDT stablecoin in early May was the main reason for such a massive decline. Also, the withdrawal of funds from DeFi projects was facilitated by the ongoing hacks of smart contracts. They affect the prices of tokens, as well as “the faith of investors in such protocols.”
At the same time, although activity in DeFi projects has decreased, the number of daily active users has not fallen so much – from 50,000 to 30,000, that is, by only 34.5%. Interestingly, at times events that took place in the cryptocurrency industry led to a surge in activity in DeFi projects. For example, during the fall of Terra, many used Curve Finance and Uniswap.
The situation on the non-fungible token (NFT) market is much better. The trading volume fell by only 26.2% compared to the first quarter. At the same time, the main reduction in trading volume took place in the Ethereum network.
Note that after the collapse of the Terra ecosystem, most of the DeFi projects based on this network chose the Polygon second-tier solution for migration.
Source: Bits
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